MobiKwik shifts digital lending business to wholly owned subsidiary after RBI approval
Author: CNBC-TV18 Markets·
Key Takeaways
- •MobiKwik has transferred its digital lending business to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL).
- •The transfer follows Reserve Bank of India approval for a non-banking financial company licence.
- •MobiKwik had previously received RBI approval to set up a lending arm.
- •The move creates a separate operational structure for the company’s lending business under the NBFC framework.
MobiKwik has transferred its digital lending business to its wholly owned subsidiary, MobiKwik Distribution Services Private Limited (MDSPL), following approval from the Reserve Bank of India (RBI) for a non-banking financial company (NBFC) licence.
The move marks a structural change in how the company will operate its lending business. MobiKwik had earlier received RBI approval to set up a lending arm, and the business has now been moved into the subsidiary. By housing the activity in MDSPL, the company is aligning its lending operations with the regulatory structure needed to run them as a separate unit, a change that matters for how digital lenders organize themselves under India’s NBFC framework.
